Yes, you can send money on PayPal with a credit card, but PayPal treats it differently than a bank account
PayPal lets you link a credit card and use it to send money to other people. However, PayPal charges a fee when you send money using a credit card — typically 2.2% of the amount plus $0.30 for transfers within the United States. If you link a bank account or PayPal balance instead, you can send money to friends and family for free (or a lower fee for goods and services).
The credit card fee exists because PayPal pays a processing cost to your card issuer every time you use the card. That cost gets passed to you. Before you send money this way, check whether your credit card issuer also charges a cash advance fee — some do, and that would stack on top of PayPal's fee, making the total cost substantial.
If you are sending money to pay for something you bought, or if the recipient is a business, the fee structure is different and may be higher. PayPal's business payment fees run 2.2% plus $0.30 or more depending on the transaction type.
Key Takeaways
- PayPal charges 2.2% plus $0.30 when you send money using a credit card within the United States, while bank account transfers to friends and family are free.
- Your credit card issuer may also charge a cash advance fee on top of PayPal's fee, so check your card's terms before you proceed.
- Linking a bank account or keeping a PayPal balance avoids the credit card fee entirely for personal transfers.
- Business payments and goods-and-services transfers have higher fees regardless of payment method, so the credit card fee difference matters less in those cases.
How to send money on PayPal with a credit card
Start by logging into your PayPal account on the website or app. Click "Send & Request" (on the website) or tap the send icon (on the app). Enter the recipient's email address or phone number, then enter the amount you want to send.
When PayPal asks you to choose a payment method, select your credit card from the list. If your card is not already linked, you will need to add it first by going to your wallet or payment methods section and entering the card number, expiration date, and CVV.
Review the fee before you confirm. PayPal will show you the exact amount that will be deducted from your card. Once you confirm, the money goes to the recipient's PayPal account or, if they do not have one, PayPal sends them a notification to claim it.
When your credit card issuer charges extra
Some credit card issuers classify PayPal transfers as cash advances rather than regular purchases. A cash advance fee is typically 3% to 5% of the amount, and it starts accruing interest when ready — unlike a regular purchase, which may have a grace period.
To find out whether your card treats PayPal as a cash advance, call the number on the back of your card and ask the issuer directly. Tell them you want to send money through PayPal and ask whether that counts as a cash advance. If it does, the total cost (PayPal's fee plus your card's cash advance fee plus interest) can easily exceed 5% to 7% of the amount you send.
If your card does charge a cash advance fee, using a bank account or PayPal balance is almost always cheaper. Even if PayPal's free transfer takes a day or two longer, the savings are worth it unless you have an urgent reason to send money when ready.
Alternatives that cost less or nothing
The cheapest way to send money on PayPal is to use your PayPal balance — the money sitting in your PayPal account from previous sales, transfers, or deposits. Transfers from your balance to friends and family are free. If you do not have a balance, link your bank account instead. Bank account transfers are also free for personal payments.
Both options take one to three business days to reach the recipient, compared to when ready or near-when ready credit card transfers. If speed is not critical, the time difference is a small price for saving 2.2% plus $0.30.
If you need to send money when ready and do not have a bank account linked, a credit card is your only option on PayPal. In that case, the fee is unavoidable — but you should still check whether your card issuer adds a cash advance fee before you proceed.
What happens if you do not have enough credit available
If your credit limit is lower than the amount you want to send, PayPal will decline the transfer. You cannot send more than your available credit allows. In that case, you have three options: wait for your payment to post and your available credit to increase, use a different card with a higher limit, or use a bank account or PayPal balance instead.
Some people try to work around a low credit limit by making multiple smaller transfers. This works technically, but each transfer incurs its own fee, so you end up paying more overall. If you are sending a large amount, a bank account is almost always the better choice.
International transfers with a credit card
PayPal allows credit card transfers to recipients in many countries, but the fees are higher and the process is more complex. International transfers typically cost 4.4% of the amount plus a fixed fee that varies by country — usually between $0.99 and $2.99.
Your credit card issuer may also charge a foreign transaction fee (usually 1% to 3%) on top of PayPal's fee. Before you send money internationally using a credit card, add up all three costs: PayPal's international fee, your card's foreign transaction fee, and any cash advance fee if your issuer classifies it that way.
For international transfers, a bank account linked to PayPal often costs less than a credit card, even though PayPal still charges a fee. Check PayPal's fee schedule for your specific destination country before you choose a payment method.
Frequently Asked Questions
Does PayPal charge a fee if I send money to a friend using my credit card?
Yes. PayPal charges 2.2% plus $0.30 for credit card transfers to friends and family within the United States. Bank account transfers to friends and family are free. If you send money for goods or services, the fee is the same regardless of payment method.
Will my credit card company charge me a cash advance fee?
It depends on your card issuer. Some treat PayPal transfers as regular purchases with no extra fee. Others classify them as cash advances and charge 3% to 5% plus interest. Call your card issuer and ask specifically whether PayPal transfers count as cash advances before you send money.
Can I send money on PayPal with a credit card if I do not have a PayPal balance?
Yes. You can send money using only a linked credit card. You do not need a PayPal balance or bank account. However, you will pay the 2.2% plus $0.30 fee, and possibly a cash advance fee from your card issuer as well.
Is it faster to send money with a credit card than a bank account?
Yes, credit card transfers are usually when ready or arrive within minutes, while bank account transfers take one to three business days. The speed difference is real, but it costs you 2.2% plus $0.30 per transfer. For most situations, the time savings are not worth the fee.
What if PayPal declines my credit card transfer?
PayPal may decline a transfer if your available credit is too low, your card has expired, or your card issuer flagged the transaction as suspicious. Check that your card is current and has enough available credit. If it does, contact your card issuer to ask whether they blocked the transfer, then try again.